CITY COUNCIL AGENDA ITEM
ACTION REQUESTED:
title
Approve the award of Sole Source Procurement 21-294, S&C Switchgear, to Weldy Lamont Group, Inc. for an amount not to exceed $541,370 and for a one-year term
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DEPARTMENT: Electric Utility
SUBMITTED BY: Brian Groth, Director
BOARD/COMMISSION REVIEW:
N/A
BACKGROUND:
In March 1994, the City Council approved the sole source award of Contract 93-122 for pad-mounted switchgear and allowed for future switchgear costs with S&C Electric Company to be negotiated, taking into account material, labor and non-labor production costs. The Utility performed an analysis in 2019 to review the reasons for the sole source designation and found the determination to still be valid.
The Utility identified S&C as a sole source due to the interoperability of consumable parts such as fuses as well as for standardization of equipment across its system which increases safety for linemen working at night as well as in inclement weather.
The Utility has identified this purchase as a sole source because in the Northern Illinois region, Weldy Lamont Group, Inc. is the only company authorized to sell S&C Electric’s manual pad mount switchgear and S&C supports the firm as a chosen partner for all Electric municipal customers. A sole source letter from the supplier is attached.
DISCUSSION:
To ensure reliable power delivery to its customers, the Electric Utility (Utility) installs high voltage switches at various points on its system. These switches allow Utility workers to isolate equipment and cable during planned maintenance and reduce outage time when cable or equipment failure occurs. The Utility has over 700 switches installed on its system which allows most customers to be fed from at least two sources of power.
This sole source is requested for approximately 20 PME-9 two-way manual air switches and ten PME-11 three-way manual air switches to replace damaged switch units. The sole source will also address the needs of new construction including a subdivision north of Nokia, east Ogden commercial work including Costco, and new commercial construction west of Citygate on Route 59. Due to material supply constraints, there is currently a four to six-month lead time for these devices that will be purchased as needed.
FISCAL IMPACT:
CIP#: N/A
S&C Switchgear is expensed to the Operating Supplies account listed below. A total of $3,500,000 was budgeted for Electric Warehouse Issuances in 2021. The requested award is within the budgeted amount for this expense.
|
Account Number |
Fund Description |
Total Budget Amount |
|
40101300-541407 |
Electric Utility |
$3,500,150 |